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    T he M ar ket ingEn v i r o nm en t

    Chapt er 3

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    Challenges Shi ft in g con sum er

    lif estyl es Low ratin gs of food an dserv ice qu al ity Atmo sphere not upscale Imag e of bein g u nclas sy,uncu ltu red and uncool toyoun ger targ et mark et s

    Ca se St ud yMcDo nal ds Ch al leng es a ndReacti onsMar ket in g In it ia ti ve s

    Focus on core comp ete ncy ofcon siste nt pr od ucts andrel iab le servi ce

    Upsc ale alternati ve in cludin gMc Cafe and Bis tr o G ourmet Hea lthi er f ood opti on s witheli mi nati on of sup ersiz e

    and introd uction of GoActi ve! Adul t Ha ppy Me al

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    Th e M ark etin gEn viron me ntMar ket in g En vi ro nme nt:The act ors and forces outs id e mar ket ingthat af fect mar ke ti ng ma nag emen ts ab ili tyto bui ld and mai ntai n su cces sf ulrel at ions hip s wit h tar get cu st omer sMi cro envi ronmentIn cl ud es th e a ct ors clo se to the co mpa ny

    Macr oenvi ro nme ntIn volv es lar ger so ci et al forces

    Goal 1: Unders ta nd environ mental factor s

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    Mar ket in g mu stco nsid er oth er par tsof the organ izat ionincl ud ing finan ce,R&D , pu rcha si ng ,operations andacco untin g Mar ket in g decisi onsmust relate tobr oade r co mpa nygo al s an d st ra teg ie s

    Microen vir on men tActorsctors The compa ny Su ppl i e r s Marke t i ngi n t e rmed i a r i e s Cust ome rs C o mp e t i tors Publ i c s

    Goal 1: Desc ri be en vi ronm enta l factors

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    Mar ket er s mu stwat ch su pp lyavailability andpr icin g Ef fect ivepartnershiprelationship

    man ag emen t withsuppliers isess en tia l

    Microen vir on men tActorsctors The compa ny Su ppl i e r s Marke t i ngi n t e rmed i a r i e s Cust ome rs C o mp e t i tors Publ i c s

    Goal 1: Desc ri be en vi ronm enta l factors

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    He lp to pro mo te , s el lan d di st rib ute go odsto f ina l b uye rs Include resellers,ph ysi cal distr ibu tionfirm s, ma rket ingser vices ag en cie s an d

    financialintermediaries Ef fect ive par tnerrelationship

    man ag emen t isess en tia l

    Microen vir on men tActorsctors The compa ny Su ppl i e r s Marke t i ngi n t e rmed i a r i e s Cust ome rs C o mp e t i tors Publ i c s

    Goal 1: Desc ri be en vi ronm enta l factors

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    The five types ofcu sto mer mar ke ts Co ns ume r Business Re sel le r Gover nmen t International

    Microen vir on men tActorsctors The compa ny Su ppl i e r s Marke t i ngi n t e rmed i a r i e s Cust ome rs C o mp e t i tors Publ i c s

    Goal 1: Desc ri be en vi ronm enta l factors

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    Conductingco mpe tit or ana ly si sis cri t ical forsu ccess of th e fi rm A marketer mustmo nit or itsco mpe tit ors

    offerin gs to cre at estrategic advantage

    Microen vir on men tActorsctors The compa ny Su ppl i e r s Marke t i ngi n t e rmed i a r i e s Cust ome rs C o mp e t i tors Publ i c s

    Goal 1: Desc ri be en vi ronm enta l factors

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    A group that has anact ual or po te nti alint er est in orimpact on anorga niza tio n

    Seven publicsincl ud e: Fi nan cia l Media Gover nmen t Ci tiz en -act io n Local General Internal

    Microen vir on men tActorsctors The compa ny Su ppl i e r s Marke t i ngi n t e rmed i a r i e s Cust ome rs C o mp e t i tors Publ i c s

    Goal 1: Desc ri be en vi ronm enta l factors

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    Macr oenvir onmen tal F orc es

    Th e M acro en vironm en t

    Demogr aphicEcono mi cNatural

    Tec hnolo gic alPoliticalCult ural

    Goal 1: Desc ri be en vi ronm enta l factors

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    Demo gr ap hi cEnvironmentDemogr aphic Envir onm ent :

    The st udy of huma n popu la tions interms of si ze, d ens ity, loca ti on,age, gender, ra ce , oc cup at ion andot he r st at is tics

    oa l 2: Le arn how de mogr aphic & econ om ic factor s affect market in g

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    Changing age str uc tur e of theU. S. po pu lat ion is the singl e mos tim po rt ant de mogra phic tren d

    Baby boo mers, Gene rat io n X, andGene rat ion Y ar e the key gro up s

    Demo gr ap hi cEnvironment

    oa l 2: Le arn how de mogr aphic & econ om ic factor s affect market in g

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    Born be tw een 194 6an d 1964 Rep rese nt 28% ofthe population; earn50% of per so nalinco me Man y min i-seg men tsex ist wi thi n th e

    boomer gro up Ent erin g p eakea rni ng year s asthey mature

    Baby BoomersGeneration X

    Generation Y

    Key Gen er at ionsey Gen er at ionsDemo gr ap hi cEnvironment

    oa l 2: Le arn how de mogr aphic & econ om ic factor s affect market in g

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    Born be tw een 196 5an d 1976 Fi rst la tch ke y ch il dre n Mai ntai n a cau tio useco nomi c outlo ok Res po nd to so ci al lyresp onsi bl e co mp an ies Wi ll be pri ma ry bu yer sof most goods by 2010

    Baby BoomersGeneration X

    Generation Y

    Key Gen er at ionsey Gen er at ionsDemo gr ap hi cEnvironment

    oa l 2: Le arn how de mogr aphic & econ om ic factor s affect market in g

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    Born be tw een 197 7an d 1994 72 million strong;

    al mo st as la rge agro up as th eir bab yboomer par en ts New products,

    ser vice s, and med iacat er to GenY Ch all en gi ng ta rge tfor mar ket er s

    Baby BoomersGeneration X

    Generation Y

    Key Gen er at ionsey Gen er at ionsDemo gr ap hi cEnvironment

    oa l 2: Le arn how de mogr aphic & econ om ic factor s affect market in g

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    Na tu ral En vironmen tNatural Envir onm ent :

    Invol ve s t he n at ura l r esources t ha tare nee ded as input s by ma rketersor t ha t are a ffe ct ed b y ma rk etingacti vi ti es

    Trends Sh ortag es of raw materi al s Increa sed pol lut ion Increa sed government int erv ent ion

    Goal 3: Iden tif y tren ds in natu ra l and te ch nologi ca l en vi ron men ts

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    Tec hno logi calEnvironment

    The mo st d ra ma ti c for ce s ha pi ngour d esti ny Rap id ly cha ngi ng force w hi chcrea tes ma ny ne w ma rke tin gopp ort uni ti es b ut a lso tur ns ma nyex ist in g prod uc ts exti nct

    Goal 3: Iden tif y tren ds in natu ra l and te ch nologi ca l en vi ron men ts

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    Pol it ical E nvi ronmen tCons is ts of law s, g overnment a genciesand p ressur e gr oups t ha t i nfl uenc e orlimi t va ri ous orga niz ations a ndindi vi dua ls in a g iven society

    Legi sl at io n affect ing busin esseswo rld wid e h as in cr ea sed Laws pr otect co mp an ies, consum er s an d

    the in ter ests of so ciet y In cr ease d e mp ha si s on so ci al lyresp onsi bl e actions

    Goa l 4: Expl ore po lit ic al and cultura l en vir on men ts

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    Ca use-R el atedMar ket ing

    Ma rket ers create li nk betw ee n b ra ndand cha ri ta bl e or ga ni zati on Demons tr at es soc ial resp onsi bi li ty Helps b ui ld p osit ive br an d ima ge Ex ampl es incl ude Genera l M il l s BoxTops f or Educat ion, T ang a nd Mot hersAg ai ns t Drunk Dr iv ing , Ed di e Bau erand l oca l school s

    Goa l 4: Expl ore po lit ic al and cultura l en vir on men ts

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    Cultural EnvironmentMade up of i nst itut ions and otherfor ces that af fect a society s bas icva lue s, p erc ept ions , pr eferenc esand behavi or s.

    Goa l 4: Expl ore po lit ic al and cultura l en vir on men ts

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    Mark et ing M an ageme ntThemselves

    Identify withbr and s for s el f-ex pr ess io nOt hers Rece nt sh ift fromme to we society

    Organizations Trend of declinein trust andloyal ty to

    co mpa nie s

    Society Pa tr iot is m o n th erise

    Nature lif est yl es of hea lt han d su sta in abi li ty(LOHAS) consumerseg men t

    Univer se In clu des reli gi onan d spi rit ual it y

    Cu ltur al Envi ronm entInc ludes p eople s v iews o f

    Goa l 4: Expl ore po lit ic al and cultura l en vir on men ts

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    Re spon di ng t o t heMark eti ng E nvi ronmen tThe re ar e thre e kinds ofcompanies: thos e who mak ethings happen , tho se who watchthings happen , and thos e w howond er wha t s happe ned.